Singapore is one of the top financial centres in the world, recently ranked 3rd globally in September 2022 beating Hong Kong. Singapore’s complex financial ecosystem not only involves great infrastructure, services, and government support but it also includes investment opportunities, ease of business set up and running, and access to a talented international workforce.
By the end of 2021, there are 700 single family offices in Singapore and this number is expected to rise. In a bid to attract more high net worth individuals and families to manage their wealth in Singapore, the government is ramping up jobs in the financial services, especially top talents worldwide to come to Singapore. Singapore’s attractive tax benefits include a progressive tax system of up to 22% annually for top tier earners, low corporate tax, no capital gains tax, and no inheritance tax, all of which helps high net worth individuals reduce their costs and preserve their wealth.
What does a Single Family Office do?
A single family office is a cohesive, integrated entity that manages the wealth of one client for wealth preservation purposes. Various financial experts with different specialties come together to manage the client’s tax, accounting, legal, businesses, investments, philanthropy, lifestyle, legacy planning and wealth education for the younger generation, amongst others. These financial experts are the best talents that the client can hire and they do not take up other clients or projects. Therefore, single family office employees are dedicated and focused on the only client.
Single family office structures differ from one client to another, depending on their goals and focus for the family, so it is highly customisable. Annual operating costs typically range between 0.75% and 1.50% of the family’s total wealth. Ultra high net worth individuals can set up their single family office in Singapore with a minimum of just $10 million in AUM.
Some advantages of a single family office are security of family’s private information and data, centralised management of wealth for all family members ensuring an alignment of interest and goals, avoid future misunderstandings and disputes with wealth management transparency achieve higher return on investments (ROI) due to reduced costs due, and centralisation of processes.
Who has set up a Single Family Office in Singapore?
In 2021, the Lohia family, Indian-Indonesian manufacturing tycoon family, chose to set up their single family office in Singapore, moving it from Dubai, due to the country’s strong financial and legal infrastructure as well as high quality of life. Recently in October 2022, India’s richest man and second richest in Asia, Mukesh Ambani, set up a family office in Singapore. Other notable individuals who have set up family offices in Singapore are James Dyson, founder of Dyson, the electronics company; and Shu Ping, one of the founders of the famous hotpot restaurant chain, Haidilao.
How to set up a Single Family Office in Singapore?
Immigration@SG (IASG) is a top immigration consultancy firm that helps foreign ultra high net worth individuals (UHNWIs) set up their single family offices in Singapore and advise on the clients’ and their family’s migration to the country if needed. Professional and efficient, IASG have served many ultra high net worth clients with their corporate and personal goals.